Answer to Question #155974 in Economics of Enterprise for iqra

Question

. Find the loss to the society because of Monopoly

a)     Area a + b

b)     Area a + b + c + d

c)     Area c + d

d)    No loss to the society

Answer 1

The deadweight loss under monopolist is represented by the area of a + b from the graph. So, the loss of society due to monopoly is a + b.

Option a is the correct answer.